EGM 2010.12.20 MINUTES GB

Minutes of General Extraordinary Meeting of owners "Edificio LA FINCA de Urbanización Aguilas del Teide-Arona", held on December, the 20th. of 2.010, in the area next to the swimming pool toilets of this complex, at 16:00 hours in second call. According with the LPH law, debitors cannot vote.

16 owners present (non being debitors). Coef. Total: 10,6299%
- Sra. Isabel Dominguez Söllheim ( Dúplex 1, garaje 110)-Coef: 1,10220.
- Sr. David Ridley ( Duplex 8, garaje 81)-Coef: 1,04990.
- Sra. Eva Scott ( Apto. A-111, garaje 142)-Coef: 0,51160.
- Sra. Sandra López (Apto. A-115, garaje 134)-Coef: 0,50200.
- Sr. Gary Rosson (Apto. A-214, garaje 118)-Coef: 0,66380.
- Sra. Eva Helena Perea Ström (Apto. B-106, garaje 101)-Coef: 0,47030.
- Sr. Anthony Frederick Stephenson (Apto. B-107, garaje 105)-Coef: 0,49950.
- Sra. Catherine Hartle (Apto. B-111, garaje 92)-Coef: 0,51410.
- Sr. Guido Braun (Apto. C-205, garaje 46)-Coef: 0,48460.
- Sra. Adriana Keresztesy (Apto. C-207, garaje 42)-Coef: 0,48460.
- Sra. Jennie Elizabeth Blackshaw (Apto. D-103, garaje 20)-Coef: 0,72570.
- Sra. Marion Waycott (Apto. D-104, garaje 17)-Coef: 0,64120.
- Sr. Allan Williams (Apto. D-113, garaje 10)-Coef: 0,72180.
- Sr. Giancarlo Brillante (Apto. E-106, E-107, garaje 73A)-Coef: 0,98330.
- Sr. Victoriano García García (Apto. E-113, garaje 132)-Coef: 0,57910.
- Sr. Imeldo Rodríguez Carlos (Apto. E-202, garaje 148)-Coef: 0,69620.

29 owners represented (non being debtors), Coef. Total: 17,8528%.
- Sra. Marion Waycott represented 4 owners: Sr. David Freeman (Apto. A-205, garaje 136) Coef: 0,48460. Sr. Stuart Brierley (Apto. B-207, garaje 79) Coef: 0,48460. Sr. Graham Robinson (Apto. B-209, garaje 74) Coef: 0,48460. Snr. Irina Rubes (Apto. D-204,garaje 25) Coef: 0,61840.

- Sra. Daniela Vanina Comini represented 7 owners: Sr. Lux Aguilar (Apto. A-108) Coef: 0,45350. Sr. Carlo Stocco (Apto. A-116, garaje 96) Coef: 0,47760. Sr. David Bonham (Apto. B-211, Apto. C-211, apto. C-213, Garaje 49, Garaje 54, Garaje 70) Coef: 1,63150. Sr. Peter Goude (Apto. C-107, garaje 62) Coef: 0,51410. Sr. Derek Mooney (Apto. C-109, garaje 59) Coef: 0,51410. Sr. Ron Adderley (Apto. C-115, garaje 41) Coef: 0,71490. Sr. Lorenzo Suarez (Apto. C-216, garaje 29) Coef: 0,66230.

- Sra. Sandra López Villalobos represented 9 owners: Sr. Paul Sturgess (Apto. A-107, garaje 152) Coef: 0,50350. Sra Maria Garcia (Apto. A-109, garaje 145) Coef: 0,50200. Sra. Jennifer Grayston (Apto. A-113, garaje 139) Coef: 0,51160. Sra. Maria Fumero (Apto. A-117, garaje 13) Coef: 0,50200. Sr. Yann Blayo (Apto. A-212, garaje 137) Coef: 0,49390. Sr. Darren Sturgess (Apto. A-216, garaje 114) Coef: 0,67560. Sra. Lourdes Torrecillas (Apto. B-102-garaje 112) Coef: 0,47030. Sr. Kevin Hewitt (Apto. E-102) Coef: 0,46550. Sra. Cristina Bruno (Apto. E-109, Garaje 128ª) Coef: 0,51250.

- Sra. Adriana Keresztesy represented 3 owners: Sra. Esther Grau (Apto. D-101, garaje 21) Coef: 0,70690. Sr. Franklin Paz (Apto. D-105, garaje 22) Coef: 0,51410. Sra. Monica Nunez (Apto. D-203, garaje 32) Coef: 0,67540.

- Sr. David Ridley represented 3 owners: Sra. Maureen Eaves (Duplex 3, garaje 103) Coef: 1,04990. Sr. John Gallagher (Duplex 6, garaje 91) Coef: 1,04990. Sr. David Eaves (Apto. C-101, garaje 40) Coef: 0,70720.

- Sr. José Antonio Giménez Navarro represented 1 owner: Apto. C-208, garaje 43-Coef: 0,47150.

- Sra. Pura Martín Pérez represented 1 owner: Apto. D-108, garaje 8-Coef: 0,51410.

- Sr. Imeldo Rodríguez Carlos represented 1 owner: Apto. D-205, garaje 31-Coef: 0,48460.


1.- Removal of current President of Community and Committee.

The current President (Sandra Lopez) explained that she dismissed Eugene for 3 reasons:
Firstly, about 3 months ago she had to ask him to comply with his timetable and tasks. Secondly he finished work early and Thirdly because he threatened her. Sandra also advised that after his dismissal Eugene denounced the community and then she denounced him.

Ms. Adriana Keresztesy pointed out that firstly no evidence of these offences has been presented by the President to either Eugene or the community and Eugene disputes the allegations.
Consequently without evidence, it is Sandra’s word against Eugene’s. Secondly there is “a” removed factual evidence that it was Sandra who first denounced Eugene by not returning the keys and subsequently he denounced the administrator and the President, but not the community for non payment of money that was owed to him, non return of his personal tools and cancelling the contract by not following the agreed terms.

Sandra Lopez said that after dismissing Eugene, the community suffered several power outages and problems with the maintenance of the pool room and implied that Eugene was in some way responsible as only herself and Eugene had the access key.

Adriana Keresztesy stated that Sandra has presented no evidence to prove that Eugene was responsible and read out a letter from the company who monitors the state of the pool and supplies the products used in the pool. The letter states that the pool equipment is in good working order and the community operator (i.e. Eugene) had been doing a good job.

Following a lot of debate, a number of the owners present asked for an explanation as to why this EGM was called and why a change of President was being requested.

Adriana Keresztesy handed to the Administrator a two page note summarising the reasons for the loss of confidence in the current President. Sandra refused to have the note read out to the owners present. The only explanation given was that the note was not on the Agenda. A copy of the note is attached to these minutes.

Victoriano García says that the President lied when she said that he had manipulated the garage doors and had he threatened her.

Another owner said that because of this confrontation with Eugen, the community will have to pay 1,800€ compensation for nothing. The Administrator answers that until now, what we owe to Eugene is the invoice for the services in the last month of work, and whether he has right or not to any other money would depend on a judgment.

Regarding the question about the reason of the EGM the administrator answered, that the EGM was requested by more than 25% of the owners.

Guido Braun explained that the call for the EGM was not made solely due to the unreasonable sacking of Eugene, but in his personal point of view he lost confidence in the current President, because:

- she ignored the opinion of the committee (with regard to the sacking of Eugene); and that the committee has been elected by the owners, even though he (Guido) offered to personally oversee maintenance work carried on by Eugene. The decision to sack Eugene was taken for personal reasons.

- she ignored a legally binding contract (Eugene’s) and opened up the community to a risk of unnecessary financial damage to the community. And as far he knows that during her period of presidentship there has been more court cases which is unusual.

- Also he has lost confidence by the financial situation of the community been published. The owners were being advised by mail that the community had funds in the bank but not mention wes being made ot the amount of money that was owed by the community.

Administrator clarifies the position regarding Denucias: Hector did not denounce the community and the old cleaning staff were paid by dismissal. Therefore the only outstanding Denuncia that we have in the community today is the one from Eugene.

Another owner stated that he is tired of this story as it seems that Eugene is the only problem regarding our community.

Adriana Keresztesy stated that the EGM was not requested by the gardener, it was because of the loss of confidence in the President and as the community finance were being mishandled. iPhone and other bills were being paid without invoices. Income e.g. from sale of keys did not appear in the bank account. Merchandise not used within the community was being paid for by the community. There has been an abnormally high number of cash payments from the bank account. Nobody was asked for opinion or know about the keys were bought for 10€ each and sold for 15€ each, and many owners bought extra keys and those sales, where was this money??
Therefore the EGM is due to mistrust in the President and for these events an external audit has been requested. This is the main reason, we don't want to hear Sandra repeating how bad the gardener was. We are not interested in that, because of her decisions and its lack of respect for us and the laws. The allegations she made against the gardener were the same as against Victoriano and Maureen. The majority of the attendees said Eugene was good maintenance and is said to be asked again for return, but we have another contract person, and we have to do the correct shape act, legal and morally.

A call was made to stop the debate. The Administrator stated that if there is just a vote against the current president there might be no president after that vote, which is not a good situation for the community and that we should vote for a new president at the same time. Sandra presented herself to be re-elected. Daniela suggested having Guido Braun as a new interim President until the AGM in February 2011.

- Votes for Sandra López: Apto. A-115, garaje 134-Coef: 0,50200. Apto. A-107, garaje 152-Coef: 0,50350. Apto. A-109, garaje 145-Coef: 0,50200. Apto. A-113, garaje 139-Coef: 0,51160. Apto. A-117, garaje 131-Coef: 0,50200. Apto. A-212, garaje 137-Coef: 0,49390. Apto. A-216, garaje 114-Coef: 0,67560. Apto. B-102-garaje 112-Coef: 0,47030. Apto. E-102-Coef: 0,46550. Apto. E-109, Garaje 128A-Coef: 0,51250. Apto. A-214, garaje 118-Coef: 0,66380. Apto. C-208, garaje 43-Coef: 0,47150. Apto. D-103, garaje 20-Coef: 0,72570. Apto. D-104, garaje 17-Coef: 0,64120. Apto. A-205, garaje 136-Coef: 0,48460. Apto. B-207, garaje 79-Coef: 0,48460. Apto. B-209, garaje 74-Coef: 0,48460. Apto. D-204,garaje 25-Coef: 0,61840. Apto. E-106, E-107, garaje 73A-Coef: 0,98330.
19 Owners. Coef. Total: 10,6969%.

- Votes for Guido Braun: Dúplex 1, garaje 110-Coef: 1,10220. Duplex 8, garaje 81-Coef: 1,04990. Apto. A-111, garaje 142-Coef: 0,51160. Apto. B-106, garaje 101-Coef: 0,47030. Apto. B-107, garaje 105-Coef: 0,49950. Apto. B-111, garaje 92-Coef: 0,51410. Apto. C-205, garaje 46-Coef: 0,48460. Apto. C-207, garaje 42-Coef: 0,48460. Apto. D-108, garaje 8-Coef: 0,51410. Apto. D-113, garaje 10-Coef: 0,72180. Apto. E-113, garaje 132-Coef: 0,57910. Apto. A-108-Coef: 0,45350. Apto. A-116, garaje 96A-Coef: 0,47760. Apto. B-211, Apto. C-211, apto. C-213, Garaje 49, Garaje 54, Garaje 70-Coef: 1,63150. Apto. C-107, garaje 62-Coef: 0,51410. Apto. C-109, garaje 59-Coef: 0,51410. Apto. C-115, garaje 41-Coef: 0,71490. Apto. C-216, garaje 29-Coef: 0,66230. Apto. D-101, garaje 21-Coef: 0,70690. Apto. D-105, garaje 22-Coef: 0,51410. Apto. D-203, garaje 32-Coef: 0,67540. Duplex 3, garaje 103-Coef: 1,04990. Duplex 6, garaje 91-Coef: 1,04990. Apto. C-101, garaje 40-Coef: 0,70720.
24 Owners. Coef Total: 16,6032%.

Sr. Imeldo Rodiguez Carlos didn’t vote.

Mr. Guido Braun is therefore elected by majority as President.
Mr. David Ridley is unanimously elected as Vice-President along with the following new committee mebers:.
Juan Lorenzo Suarez Moreno, Allan Williams, Victoriano García García, David Bonham, Adriana Keresztesy.
Per unanimity agreement was re-elected as Secretary-Administrator José Antonio Giménez Navarro.
It was also agreed that the new President and committee members should be added as signatories to the community’s bank account and that in future three signatures would be required on cheques.

2. Carry out an Audit: expenses, receipts, Management of the community, etc.It is proposed that the community request an external audit of the community’s accounts by an official auditor in view of anomalies that have been found. So far there is one quote of 1.500€ for each year audited. Further quotes will be requested.

The request for an external audit has not been taken lightly in view of the costs to the community but it is felt that it is necessary in view of the anomalies found so far, including:
- Payments being made without invoices e.g. telephone bills
- Petty cash held by the President, which is unusual.
- Payments with cheques "al portador", which is not transparent, difficult to track.
- Order and payment of things which were not necessary according to the financial situation of "La Finca".

Were stated that this should be done annually, as every time we change the President, we have the same rumours, and this would contribute to a greater transparency and avoid confrontation.

Going forward the new President and committee want to introduce more control over income and expenditure (including better debtor control) and eliminate the cash fund held by the President.

Proceeded to vote the proposal of the audit with the following results:

- Votes against the audit: Apto. B-107, garaje 105-Coef: 0,49950. Apto. B-111, garaje 92-Coef: 0,51410. Apto. D-103, garaje 20-Coef: 0,72570. Apto. D-108, garaje 8-Coef: 0,51410. Apto. E-106, E-107, garaje 73A-Coef: 0,98330.
5 Owners, Coef Total: 3,2367%.

- Votes in favour of the audit: Dúplex 1, garaje 110-Coef: 1,10220. Duplex 8, garaje 81-Coef: 1,04990. Duplex 3, garaje 103-Coef: 1,04990. Duplex 6, garaje 91-Coef: 1,04990. Apto. C-101, garaje 40-Coef: 0,70720. Apto. A-111, garaje 142-Coef: 0,51160. Apto. A-115, garaje 134-Coef: 0,50200. Apto. A-107, garaje 152-Coef: 0,50350. Apto. A-109, garaje 145-Coef: 0,50200. Apto. A-113, garaje 139-Coef: 0,51160. Apto. A-117, garaje 131-Coef: 0,50200. Apto. A-212, garaje 137-Coef: 0,49390. Apto. A-216, garaje 114-Coef: 0,67560. Apto. B-102-garaje 112-Coef: 0,47030. Apto. E-102-Coef: 0,46550. Apto. E-109, Garaje 128A-Coef: 0,51250. Apto. B-106, garaje 101-Coef: 0,47030. Apto. C-205, garaje 46)-Coef: 0,48460. Apto. C-207, garaje 42-Coef: 0,48460. Apto. D-101, garaje 21-Coef: 0,70690. Apto. D-105, garaje 22-Coef: 0,51410. Apto. D-203, garaje 32-Coef: 0,67540. Apto. C-208, garaje 43-Coef: 0,47150. Apto. A-108-Coef: 0,45350. Apto. A-116, garaje 96A-Coef: 0,47760. Apto. B-211, Apto. C-211, apto. C-213, Garaje 49, Garaje 54, Garaje 70-Coef: 1,63150. Apto. C-107, garaje 62-Coef: 0,51410. Apto. C-109, garaje 59-Coef: 0,51410. Apto. C-115, garaje 41-Coef: 0,71490. Apto. C-216, garaje 29-Coef: 0,66230. Apto. D-104, garaje 17-Coef: 0,64120. Apto. A-205, garaje 136-Coef: 0,48460. Apto. B-207, garaje 79-Coef: 0,48460. Apto. B-209, garaje 74-Coef: 0,48460. Apto. D-204,garaje 25-Coef: 0,61840. Apto. E-113, garaje 132-Coef: 0,57910, Apto. D113, garaje 10-Coef. 0,7218
38 Owners., Coef. Total: 23,3996%.

Sr. Imeldo Rodriguez Carlos did not vote.

To do the audit by an auditor collegiate officially were approved by majority.

3. Any other business.
-Does not take any agreement on this point.

No having more issues to deal with, the meeting was adjourned at 18:00 hours.

Fdo: D. José Antonio Giménez Navarro. Fdo: D. Guido Braun.
(Secretary). (President).




La Finca EGM - Dec 20 1010
The following is a synopsis of reasons for calling this EGM, for replacing the current President of La Finca and for having the annual accounts independently audited.

After being elected President at the 2008 AGM, most owners will agree that Sandra proved to be an excellent choice and performed the associated tasks admirably.

Gradually however, the President adopted what has been described as a “Dictatorial Attitude”, making important decisions without reference to others, and ignoring the expressed wishes of owners.

A number of owners have become concerned at the operation of La Finca and at the financial situation of the community accounts.

Concerns grew when discussion and decisions taken at General Meetings, were not accurately reflected in minutes.

Those concerns reached unacceptable levels when the President refused to allow discussion on a childrens’ playground proposed to be built on the rear garden of La Finca. She further resisted and delayed an EGM called by owners in accordance with Spanish Law.

The President took it upon herself to fire cleaning staff without regard to associated costs. Despite a court imposed substantial charge for unfair dismissal, the President had the temerity to present her action as a saving for La Finca.

The President later dismissed Eugen, the gardener and handyman, just three days after he presented a note to the La Finca Administrators, detailing what he believes are incidences of improper use of community funds. The President then published a letter to owners, listing spurious reasons for the man’s dismissal, but making no mention of his note to the Administrators. Another court case for unfair dismissal is pending.

Spanish Law provides that owners may at any time examine the accounts of their community, upon request to their Administrators. Requests dating from Sep 10 2010 were ignored until a group of concerned owners were finally granted access on Nov 04 2010.

That examination revealed very many unconventional accounting practices including the following:

(a) Total billed Maintenance Fees is shown as Income. This is misleading as it ignores the fact that La Finca has a substantial number of debtors who do not pay their monthly Maintenance Fees.

(b) Before the Oct 07 2010 EGM, the then existing Bank Balance was presented as “current financial situation”. This again is misleading, as it ignores all outstanding amounts owed by La Finca to suppliers, on that date.

(c) The accounts indicate that many payments appear to have been made against quotations instead of invoices and without receipts. This unusual business practice makes it difficult to ascertain that the relevant product or service paid for, was actually provided.

(d) A very large number of cheques for products and services, were made out to cash. This extremely dubious business practice makes it impossible to track the payments.

(e) Regular payments have been made for services, where no contract is held by the Administrators’s office.

(f) Several hundred new security keys for La Finca entrance gates/pool gates were purchased for EU 10.00 each. Extra keys were sold to owners at EU 15.00 each, but the profit does not appear on the accounts.

(g) Spanish Law provides that 5% of annual income be put aside as a Reserve Fund. Though this was separately budgeted for at the start of the 2009 and 2010 Financial Years, in each case it had disappeared from accounts during the year.

(h) Telephone costs have increased dramatically and no details of usage are available.

(i) Similarly, costs of postage have increased dramatically during the last two years.

An independent audit of the La Finca accounts at the end of each Financial Year would ensure transparency and remove any suspicion of impropriety, more than justifying the small additional cost.